Ride Share Companies Hail New Sponsorships

Other segments of the sharing economy are increasingly joining ride share companies in using sponsorship to build their brands and drive business. more...

In just a few years, ride share services have evolved from an upstart industry into a mature category with a ubiquitous presence across the sponsorship landscape.

In one measure of activity, Uber this year replaced PepsiCo as the second most active sponsor of U.S. music festivals. Twenty-one percent of properties with a sponsor in the ride share category report a partnership with Uber, per ESP research. Eight percent of music festivals reported a partnership in 2016.

And companies continue to sign new deals. Uber this year has signed new partnerships with the Columbus Crew, Buffalo Bills and other properties, while Lyft has partnerships with NFL Players Inc., Phoenix Rising FC and The Meadows Music and Arts Festival in Queens, New York, just to name a few.

In one of the largest deals in the category, Uber this year signed official rideshare and transportation partner status across numerous AEG assets in Europe and the U.S. The multiyear deal affords a presence at more than 25 music festivals, venues and sports teams including the Bonnaroo music festival, Staples Center, The O2 and the LA Kings.

“Uber already plays a big part in a fan’s game day, concert, or event experience by getting you there safely and on time. This partnership with select AEG venues takes that experience to a whole different level. Now, fans will have access to new perks, designated pick-up and drop-off spots and exclusive promotions — creating the best event experiences for all fans,” said Amy Friedlander Hoffman, Uber head of experiential marketing, in a statement announcing the partnership.

And upstart companies are increasingly joining the sponsorship fray. ZTrip has partnered with the Kansas City Chiefs, the Sprint Center in Kansas City and Baltimore’s Pier Six Pavilion, while Ride Austin this year teamed with the Austin Rodeo, Austin Food + Wine Festival and the Austin City Limits Music Festival.

Sponsorship activity is expected to heat up even more as additional companies enter the category. Some of these new players are putting a new spin on ride share services. That includes companies like Chariot, a crowdsourced shuttle service. Chariot is expanding service to seven markets this year following its San Francisco launch.

Ride share services use sponsorship to accomplish five primary objectives:

Acquire new customers

Drive incremental business from existing customers

Acquire new drivers

Reward existing drivers

Promote ancillary services (Uber Eats, etc.)

In a major positive for rightsholders, ride share companies are increasingly moving away from incentive deals in which properties are reimbursed based on how many rides they deliver in favor of cash partnerships.

How Ride Share Services Help Enhance The Fan Experience
Ride share companies provide a major benefit for rightsholders: the opportunity to enhance the fan experience.

Many consumers, particularly Millennials, are increasingly looking for transportation options to sports games, music festivals and other events. Ride share services help fulfill those needs — and bring fans closer to their passions.

That’s the case with the Columbus Crew and Uber.

“The partnership happened naturally for us and made sense for both parties. It’s a way for us to enhance the ingress/egress options for our supporters and continue our efforts to implement and strengthen the efficiency of the match day experience,” said JP Lococo, Columbus Crew SC business development manager, corporate partnerships.

The MLS team pitched Uber two key assets: a dedicated pick up/drop off zone (an asset Uber refers to as a “PUDO” zone) and promotional offers to drive usage.

Uber ran a promotion earlier this year that gave riders the opportunity to win a 2017 Columbus Crew jersey, tickets to a game and a match day experience.

In some cases, Crew players delivered the jerseys to contest winners to provide an even more personalized experience.

Data also plays a role in the sponsorship. Uber shares data with the Columbus Crew on the success rate of Mapfre Stadium’s drop-off/pickup zone.

“Uber collects and shares data with us regarding the success rate of trips for our supporters such as average wait time for riders, ensuring cancellation rates are dropping and overall ridership numbers increasing,” said Lococo.

Uber also shares fan/rider data from in-market promotions throughout the season, he added. “We have the ability to access their database for select marketing and messaging throughout the year, and vice versa.”

Uber also gives the team ride credits, an asset it shares with players, staff, season ticket holders and other stakeholders.

Another key sponsorship driver: driver acquisition and recognition.

Uber activates the LA Kings with a driver incentive program for fans who sign up to be drivers and a “King of the Month” promotion that honors specific drivers with tickets, VIP experiences and on-ice recognition.

Similarly, Uber leverages the San Francisco Giants and other MLB teams with a home plate ceremony honoring Uber All-Star driver-partners.

Other Segments Of The Sharing Economy Using Sponsorship

Other segments of the sharing economy are increasingly joining ride share companies in using sponsorship to build their brands and drive business.

Below, three segments of the sharing category using sponsorship.

Home Share
While they may not be as active as their ride share counterparts, home sharing companies are increasingly booking new sponsorships.

Airbnb this year inked a hometown deal with the San Francisco Giants. The two organizations are leveraging the partnership in support of Heading Home, a campaign designed to end family homeless in San Francisco.

Airbnb and the Giants support the initiative by making a donation to the campaign for every run scored at AT&T Park this season.

“San Francisco has a homeless problem, and both companies are residents here. We want to do something to help,” said Brenden Mallette, San Francisco Giants director of partnership sales and development.

“The Airbnb brand is strong. They don’t need awareness. But what they do need is enhancing brand equity and share of heart so people feel good about the company they created.”

Airbnb over the past several years has run promotions with pro sports teams that offer the chance to stay in a team clubhouse or other unique locations.

The company in 2016 partnered with the Seattle Sounders to offer consumers the opportunity to spend a night at THE NINETY, the team’s clubhouse. The winning fan had the opportunity to meet players, receive VIP tickets to the team’s match up against the LA Galaxy, have dinner with Sounders FC alumni players and test their soccer skills on the pitch at CenturyLink Field.

Airbnb also used the promotion to acquire hosts. Consumers who entered the contest and became a first-time host received $300 in Sounders FC tickets and swag.

Airbnb ran a similar promotion as official alternative accommodations service supplier at the 2016 Rio Summer Olympic Games. The promotion dangled lodging inside the Rio Olympic Arena that was outfitted with gymnastic equipment.

The sponsorship afforded a landing page on the Rio Olympic Games ticketing platform where consumers could book their listings in Rio.

Other players in the home share category include HomeAway (a sponsor of the Austin City Limits Music Festival), VRBO, FlipKey and Tripping.com.

Sponsorship Hot Buttons:

Drive bookings

Acquire new hosts

Promote local positioning

Access unique lodging experiences

Car Share
Automobile manufacturers, auto rental companies and other types of companies are increasingly launching and/or expanding their car share initiatives, and a growing number are using sponsorship to promote the services.

The car share industry is expected to post a nearly 35 percent annual growth rate from 2016 to 2024, per Global Market Insights. The research firm expects revenue to grow from $1.2 billion to $16.5 billion in 2024, a nearly sixteen-fold increase.

The car share category can be broken down into two segments: business-to-consumer companies and peer-to-peer companies.

The B2C segment includes companies that rent their own vehicles (BMW/ReachNow; Daimler/Car2go; General Motors/Maven; Triple-A/Gig, etc.), while the P2P segment includes companies that let vehicle owners rent their cars when not in use (GetAround, Turo, etc.)

Most deals currently emanate from B2C companies, with nearly every company partnering with a sports and/or entertainment property. Recent deals include Car2go and the BRIC Celebrate Brooklyn! Festival; ReachNow and the Upstream Music Festival + Summit; and Maven and the Boston Calling, Full Moon and Shaky Knees music festivals.

In addition, Triple-A this year leveraged its long-running partnership with the San Francisco Giants to display Gig-branded cars at AT&T Park.

Care share companies are often open to sponsor cross-promotions. Car2go, for example, offered samples of Sorbabes gourmet sorbet to consumers who signed up for its service at the BRIC Celebrate Brooklyn! Festival.

Sponsorship Hot Buttons:

Build awareness

Promote personal mobility options

Drive trial

Reward existing customers

Gain on-site vehicle display

Bike Share
A new breed of bike share services is hitting the market, and at least one company is using sponsorship to promote its offerings.

Unlike traditional bike share systems (Citi Bike, etc.) that require customers to return bikes to docking stations, companies such as Spin and Bluegogo allow riders to leave their bikes anywhere they wish within their local marketing territory.

By freeing their systems from infrastructure requirements, the companies offer a significant cost advantage over traditional bike share services. Spin, for example, charges approximately $1 per half hour.

And some companies are using sponsorship to promote their services. Spin this year signed a new partnership with the Bite of Seattle.

IEG Sponsorship Report

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